March 16, 2008...5:10 pm

Wal-Mart Store In Dearborn Reflects Population

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Could Dearborn, Michigan be showing the world the future of the world’s largest retail store? Wal-Mart in that town has added Middle Eastern merchandise to its shelves reflecting the population of the area.

With an international aisle that reflects the huge Arab population in the town Wal-Mart is going from a store that customizes it’s chains to a market that meets the needs of its communities.

Another glimpse of smart marketing is that the Dearborn store vowed not to undercut other merchants in the area on Middle Eastern specialties. With an Arab population of 300,000 in Dearborn it was a wise move.

“I have not heard of anything this tailored. It’s inspiring to me as a shareholder,” said Patricia Edwards, portfolio manager and retail analyst in the Seattle office of San Francisco-based investment manager Wentworth, Hauser & Violich, which has 537,000 shares of Wal-Mart Stores Inc. stock.

The Dearborn store also employs 35 Arabic speaking staff whose name tags show that skill. The store also hired an educator to teach the staff cultural sensitivity.

The Arab market isn’t the only one in Dearborn being looked after with Hispanic items also offered.

“It’s very important that we have the variety of the Muslim, Hispanic items, local items, at a comparable price,” Bill Bartell, the store manager who developed the international aisle with Tut’s International Export & Import Co. said. “If you go over to Warren (Avenue) where there’s other … small retailers, they have a variety that goes on and on and on.”

The Dearborn store is part of a two year corporate effort to tailor their stores to meet the needs of local markets. Six groups have been targeted with this effort; Hispanics, blacks, empty-nesters/boomers, affluent, suburban and rural shoppers.

“Wal-Mart is a little kinder and gentler than they were 10 years ago. They are fierce competitors … but I don’t think they’re trying to do a scorched earth policy,” Patricia Edwards said.

“The trick for these local merchants is … they’re going to have to change how they operate in the face of this changing competition.”

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